Apple is deciding whether or not to invest $10,000 in research and development to develop the iGlasses. If they make this investment today, they will be able to develop the iGlasses for sure and start selling them starting from next year. They will also obtain a 10 year patent on the product. Once the patent expires, copycats will leap into the market and make it perfectly competitive. Other than the research and development investment, the cost of producing iGlasses is approximately 0. Suppose that market demand for the iGlasses is in each year. The interest rate is 10% and there is no inflation. Apple will… …develop the iGlasses …not develop the iGlasses The answer is ambiguous. unanswered Suppose that the U.S. government decreases the number of years for which a patent is valid to 5. Apple will… …develop the iGlasses …not develop the iGlasses The answer is ambiguous. unanswered Following this example, how we can expect the length of patents to affect innovation? Shorter patents will most likely increase innovation Shorter patents will most likely decrease innovation